Date Published 26 January 2024
With the deadline for tax returns approaching next week, HM Revenue and Customs have released data showing that 3.8 million people are yet to file their tax return. Many thousands of this 3.8 million are believed to be Landlords.
HMRC has stated that it expects more than 12.1 million tax returns to be filed for the 2022 to 2023 tax year along with any payment that is owed. Only 8.3 million of this had been received by end of January 24th.
For not completing your tax returns you will receive an initial £100 fixed penalty for any late returns, this also applies even if there is no tax to pay, or if the tax due is paid on time. There are also additional penalties for further late tax returns. After three months, additional daily penalties of £10 per day, up to a maximum of £900 are levied; after six months, there's a further penalty of five per cent of the tax due or £300, whichever is greater. After 12 months, another five per cent or £300 is charged, whichever is greater. More additional penalties are for paying outstanding tax late. These are five per cent of that unpaid at 30 days, six months and 12 months. Interest will also be charged on any tax paid late.
On the off chance that you wind up in a predicament for not having the option to fulfil the time constraint. HMRC will consider a Landlords reasons and the people who give a sensible explanation may avoid a penalty.
